Astrotech Corporation (NASDAQ: ASTC) reported its financial
results for the fourth quarter and fiscal year ended June 30,
2017.
Thomas B. Pickens III, Chairman and CEO of Astrotech
Corporation, stated, “Fiscal 2017 was an extraordinary year in
terms of product development at both 1st Detect and Astral Images.
At 1st Detect, along with our partner, we delivered an instrument
to the Transportation and Security Administration (TSA). By
incorporating mass spectrometry (MS) into explosives trace
detectors (ETDs), we expect to significantly reduce the number of
false positives, as well as enable a more expansive library of
compounds compared to the current generation of ETDs.
“1st Detect also developed the BreathDetect 1000, an instrument
that uses our core technology to analyze human breath in real time.
In collaboration with UT Health San Antonio, we entered
pre-clinical trials with cystic fibrosis patients, focusing on
identifying hospital-acquired pneumonia (HAP). HAP is one of the
biggest and most expensive problems in hospitals, with over 150,000
cases reported in the U.S. annually. In June, we announced
successful preliminary results from these pre-clinical trials. We
aim to reduce HAP diagnosis time from days to minutes.
“At Astral Images, we are positioned to lead the digital
conversion from High Definition resolution (2K HD) to 4K resolution
with High Dynamic Range (4K HDR) for feature films, film-based
television series, sporting events shot on film, film libraries,
and archives. Astral offers content owners a significant value
proposition by dramatically reducing the cost and time required to
upgrade to the new 4K standard. Several major film studios have
provided excellent feedback on our technology, and we expect 4K HDR
conversions to accelerate in parallel with consumer demand for
high-quality content as 4K HDR televisions become ubiquitous.”
Regarding Astrotech Corporation, in May, management announced
that it engaged Chardan Capital Markets to explore strategic
alternatives regarding 1st Detect; these discussions are ongoing.
From a financial perspective, gross profit more than doubled
year-over-year. Combined with the effective corporate realignment
and decreased operating expenses, the company’s fiscal 2017 bottom
line improved $1.5 million compared to the previous year.
Mr. Pickens concluded, “Our technology continues to be validated
by industry leaders. We are committed to innovation and, in
particular, we are focused on furthering product development with
the goal of expediting our time to market. Overall, we are excited
about our ongoing improvements and opportunities in fiscal
2018.”
Fiscal Year Financial
Highlights
Revenue, costs of goods sold, SG&A, and R&D are expected
to continue to fluctuate based on the timing of contract
revenue.
- Revenue was $2.3 million for the year
ended June 30, 2017, reflecting 1st Detect's income from
research-based, fixed-price, government-related subcontracts. This
is compared to $2.7 million for the year ended June 30, 2016,
which included revenue of $0.2 million associated with revenue from
a legacy business.
- Gross profit was $1.0 million for the
year ended June 30, 2017, compared to $0.3 million for the
year ended June 30, 2016, due to lower prototype costs.
- The July 2016 corporate realignment
saved approximately $3.7 million for fiscal year 2017, $0.2 million
better than originally anticipated.
- Loss from operations was $12.1 million
for the year ended June 30, 2017, compared to $13.8 million
for the year ended June 30, 2016, reflecting increased gross
profit and reduced expenses.
- Cash and investments at June 30,
2017 were $15.1 million.
- Astrotech Corporation had no debt at
June 30, 2017.
About Astrotech Corporation
Astrotech Corporation (NASDAQ: ASTC) is an innovative science
and technology company that invents, acquires, and commercializes
technological innovations sourced from research institutions,
laboratories, universities, and internally, and then funds,
manages, and builds proprietary, scalable start-up companies for
profitable divestiture to market leaders to maximize shareholder
value. Sourced from Oak Ridge Laboratory’s chemical analyzer
research, 1st Detect develops, manufactures,
and sells chemical analyzers for use in the security, defense,
healthcare, food and beverage, and environmental markets. Sourced
from decades of image research from the laboratories of IBM and
Kodak, Astral Images sells film-to-digital image
enhancement, defect removal and color correction software, and post
processing services providing economically feasible conversion of
television and feature 35mm and 16mm films to the new 4K ultra-high
definition (UHD), high-dynamic range (HDR) format necessary for the
new generation of digital distribution. Sourced from NASA’s
extensive microgravity research, Astrogenetix is applying a
fast-track, on-orbit discovery platform using the International
Space Station to develop vaccines and other therapeutics.
Demonstrating its entrepreneurial strategy, Astrotech management
sold its state-of-the-art satellite servicing operations to
Lockheed Martin in August 2014. Astrotech has operations throughout
Texas and is headquartered in Austin. For information, please visit
www.astrotechcorp.com.
This press release contains forward-looking statements that are
made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks, trends, and uncertainties that
could cause actual results to be materially different from the
forward-looking statement. These factors include, but are not
limited to, whether we can successfully develop our proprietary
technologies and whether the market will accept our products and
services, as well as other risk factors and business considerations
described in the Company’s Securities and Exchange Commission
filings including the annual report on Form 10-K. Any
forward-looking statements in this document should be evaluated in
light of these important risk factors. The Company assumes no
obligation to update these forward-looking statements.
ASTROTECH CORPORATION
Consolidated Statements of Operations and
Comprehensive Income (Loss)
(In thousands, except per share data)
June 30, 2017 2016
Revenue $ 2,328 $ 2,671 Cost of revenue 1,293
2,332 Gross profit
1,035
339 Operating expenses: Selling, general and
administrative 7,508 7,708 Research and development 5,587
6,469 Total operating expenses 13,095
14,177 Loss from operations
(12,060
) (13,838 ) Interest and other income, net
306 379
Loss from operations before
income taxes (11,754 ) (13,459 )
Income tax (expense) benefit (2 ) 25
Net
loss (11,756 ) (13,434 ) Less: Net
loss attributable to noncontrolling interest (174 )
(339 )
Net loss attributable to Astrotech Corporation
$ (11,582 ) $ (13,095 )
Weighted average common shares outstanding: Basic and
diluted 20,418 20,388 Basic and diluted net loss per common
share: Net loss attributable to Astrotech Corporation $ (0.57 ) $
(0.64 ) Other comprehensive loss, net of tax:
Available-for-sale securities Net unrealized losses $ (20 ) $ (92 )
Reclassification adjustment for realized losses included in net
loss 60 14
Total comprehensive loss
attributable to Astrotech Corporation $ (11,542
) $ (13,173 )
ASTROTECH CORPORATION
Consolidated Balance Sheets
(In thousands, except share data)
June 30, 2017 2016
Assets Current assets Cash and cash equivalents $ 2,184 $
4,399 Short-term investments 10,900 17,102 Accounts receivable 146
156 Costs and estimated revenues in excess of billings — 451
Inventory: Raw materials 109 327 Work-in-process 57 75 Finished
goods — 94 Prepaid expenses and other current assets 269
319
Total current assets 13,665
22,923 Property and equipment, net 3,180 3,392 Long-term
investments 1,990 4,208
Total
assets $ 18,835 $ 30,523
Liabilities and stockholders’ equity Current
liabilities Accounts payable $ 259 $ 237 Payroll related accruals
907 1,000 Accrued and other liabilities 641 509 Income tax payable
2 —
Total current liabilities
1,809 1,800 Other liabilities 256
96
Total liabilities 2,065
1,896 Commitments and
contingencies Stockholders’ equity Preferred
stock, no par value, convertible, 2,500,000 shares authorized, no
shares issued and outstanding, at June 30, 2017 and June 30, 2016 —
— Common stock, no par value, 75,000,000 shares authorized;
22,512,544 and 21,811,153 shares issued at June 30, 2017 and June
30, 2016, respectively; 20,571,403 and 20,627,511 shares
outstanding at June 30, 2017 and June 30, 2016, respectively
190,382 189,294 Treasury stock, 1,986,141 and 1,183,642 shares at
cost at June 30, 2017 and June 30, 2016, respectively (4,121 )
(2,828 ) Additional paid-in capital 1,483 1,419 Accumulated deficit
(170,913 ) (159,117 ) Accumulated other comprehensive loss
(61 ) (101 )
Equity attributable to stockholders of
Astrotech Corporation 16,770 28,667
Noncontrolling interest — (40 )
Total
stockholders’ equity 16,770
28,627 Total liabilities and stockholders’
equity $ 18,835 $ 30,523
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version on businesswire.com: http://www.businesswire.com/news/home/20170918005229/en/
Company Contact:Astrotech CorporationEric Stober,
512-485-9530Chief Financial OfficerorIR Contact:LHA Investor
RelationsCathy Mattison, 415-433-3777ir@astrotechcorp.com
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